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The latest government procurement report shows the U.S. Navy has for the first time put biofuels in the mix for requests for military-specification diesel fuel and jet fuel. This story from U.S. Energy Information Agency (EIA) says the request is for the eastern and inland United States and Gulf Coast and is expected to the Rocky Mountains and West Coast later this year.

The U.S. Navy’s interest in biofuels is part of its goal to generate 50% of its energy from alternative sources by 2020: nuclear energy, electricity from renewable sources, and biofuels. The Navy currently sources about 17% of its energy supplies from renewable and nuclear sources of electricity. No biofuels are currently included in that percentage.

The Navy’s interest in biofuels is limited to those fuels that can be used as direct replacements for petroleum-based gasoline and distillate fuels, also known as drop-in biofuels. These fuels require no modification or operational changes to distribution infrastructure, aircraft, or ships. Although biodiesel blends readily with diesel fuel or jet fuel, and is compatible with most diesel engines, it is not a drop-in fuel. Certain properties limit biodiesel blends from being used in some applications: potential fuel system clogging and poor performance at low temperatures prevent its use in jet fuel for civilian or military use, and water separation problems prevent its use as a marine diesel fuel. Drop-in biofuels are available today on a limited commercial basis, and operable U.S. production capacity is about 210 million gallons per year.

Companies wanting to make a bid to offer drop-in biofuels under the current solicitation can apply to the USDA Commodity Credit Corporation for grants to offset the cost of feedstocks used to produce the biofuels. Some drop-in biofuels might also qualify for Renewable Identification Numbers (RINs).